10.39 In 1993, Ford simultaneously borrows Spanish pesetas at 13% and invests dollars at 10%, both for one year. At the time Ford enters into these transactions, the spot rate for the peseta is $0.095. If the spot rate is Ptas. 1S0.087 in one year, what is the cost to Ford of this money market hedge? a) 2.0% b) 3.8% c) 1.300 d) Ford has a 6.5% gain, not a cost